Pro BITCOIN President?! What Does Javier Milei Mean For Crypto?

Well he's only gone and done it hasn't He the man with the Beatles haircut and The mly crew attitude to life is Argentina's new president so could El Loco be Argentina's salvation in the Face of catastrophic levels of inflation And could crypto play a part now as a Right-wing libertarian mle is often Lorded as being pro Bitcoin but is this Really the case and if so could he Follow El Salvador's example and make BTC legal tender in South America's Second largest economy or could he at Least slash restrictions on access to BTC which could in turn have profound Consequences for its price well let's Find out shall we Okay so first of all who on God's green Earth is Javier mle well perhaps most Importantly he's a trained Economist With two master's degrees in economics He worked as the chief Economist at one Of Argentina's largest business Conglomerates as well as at HSBC and he's written books and Publications outlining his economic Vision here's a passage outlining his Libertarian views quote when it is made Clear that the correction of market Failures by the government as proposed In the neoclassical Paradigm is Conceptually invalid etc etc etc there Will no longer be any reason for Government Intervention which will not

Only stop the Socialist advance but will Also allow us to Counterattack in other Words shrink the state and cut left-wing Policies like social welfare now while You may disagree with his views and Perhaps be distracted by his wild Antics Which I'll get to in a second the man Does have some economic pedigree and This is important to note when you hear Of lazy comparisons made between him and Other right-wing populists like Donald Trump and Brazil's Jer bolsonaro they Might share a style but they differ in Substance as well as Vision Trump for Instance is a protectionist he imposed Tariffs on countries like China Mexico And Canada and told manufacturers where To place their plants mle couldn't care Less about protectionism what he does Care about is sensationalism and this is Where the populists align for the sake Of context and let's face it Entertainment here are a few of mle's Special mentions he's waved a chainsaw Around at rallies as a symbol of his Determination to chop down the bloated State and what he calls quote the Political cast he's beaten a pinata in The shape of the Central Bank into Smither to show his disdain for Argentina's money printing institution He's rocked out on stage dressed up as His own super hero and has said people Should be allowed to sell their own

Organs and he's insulted everyone from Feminists to Pope Francis that's right He's called the head of the Catholic Church a fellow Argentine a quote Imbecile and quote the representative of Malignants on Earth dios MI And Malay also has a more shall we say Quirky side which the media duly laps up He's named four of his beloved dogs After famous economists including Milton Fredman a fifth is called Conan after Conan the Barbarian which does seem apt He calls himself a quote lion and was Once a tantric sex coach but I think the Less said about that the better now Before explaining his position on crypto And what impact that could have on Argentina I should first explain how This man so steeped in controversy Became Argentina's president after all Until recently no political expert worth Their salt thought mle had any real Chance well to borrow a phrase from James Carville Bill Clinton's onetime Political strategist quote it's the Economy stupid possibly no other country In history has quite the same levels of Unmet potential as Argentina at the turn Of the 19th century it had one of the Largest economies in the world but since The 1930s Argentina's economy has Suffered continuous cycles of boom and Bust it ended the 20th century with a GDP half that of Italy's and in the past

Two decades things have gotten worse Much worse today Argentina is Experiencing crazy levels of Hyperinflation at around 14 40% among The highest in the world two out of five Argentines now live in poverty in 4 Years Argentina's currency the pzo has Lost 90% of its value imagine that for a Second in Practical terms it means Prices are changing by the week it means That menu prices are written on stickers So they can be regularly updated it also Means that money exchange shops are Commonplace so people can quickly Convert their earnings into us dollars Or other currencies that can better hold Their value but many of these stores are Illegal since there are tight Restrictions in the country against Buying foreign currencies so in this Context it's not hard to see why Argentine's have had enough years of Economic mismanagement have gutted the Country's economy they want a complete Shakeup and this is exactly what mle has Promised mle proposes economic shock Therapy of which there are three key Aspects the first is to shut down the Central Bank he hates it he calls it a Quote scam and a tool used by Politicians to cheat the public with Inflationary tax he's pledged to remove It before lowering taxes the second Aspect involves huge spending cuts his

Plan includes abolishing 11 of Argentina's 19 Ministries and not only That he wants to cut GDP spending by 15% And massively slash welfare payments However this comes with very high risk Opponents argue that such drastic Measures could disproportionately impact Vulnerable communities 40% of argentines I should remind you are living in Poverty in such an atmosphere critics Fear that these Cuts could cause social Unrest especially given how powerful the Country's labor unions and social groups Are many are in agreement that Argentina Needs to slash its spending but not Everyone believes its people can really Stomach such a forced diet now the third Key aspect of this shock therapy is to Replace the pzo with the US dollar this Dollarization strategy is not a new idea It's been implemented in places like El Salvador Zimbabwe Panama and Ecuador as Well as a few island nations now Ecuador Is the particularly interesting example Here as it's the one mle often cites as Inspiration for his vision in 2000 after Facing similar inflation and poverty Levels to current day Argentina Ecuador Dollarized this brought inflation levels Down from 96% in 2000 to 8% 3 years Later Ecuador's economy is not perfect But it's a sh sight better than it was Before dollarization and if like mle Seems to be you are squarely focused on

Combating inflation dollariz the economy Is an effective way to go however as Many economic experts have warned Dollarization comes with enormous risks For one if it is implemented it will Mean that Argentina has greatly reduced Control over trade terms and monetary Policy this means it will be Particularly vulnerable to external Shocks like oil price changes and Global Conflicts it will will in fact be Subject to the whims of the US Federal Reserve some critics are saying that Mle's talk of dollarization is Unfeasible Argentina has minimal US Dollar reserves and is not in a great Position to secure funds from Global Capital markets sure it could Potentially get a loan from the International monetary fund but this Won't be straightforward Argentina is Already the largest deta to the IMF with Jews in excess of $40 billion that is a Staggering Bill to have to pay and is One of the many pressing issues on Melee's plate while the loan can be Renegotiated presumably the IMF will Want mle's new government to come up With a credible repayment Plan before it Would consider revising the terms but While the naysayers at least in the west Seem to be the loudest some notable Economists are hailing mle's Vision as Brilliant Steve hanky professor of

Applied economics at John Hopkins University is one of mle's more vocal Supporters in a recent discussion which I'll leave a link to below Steve claimed That quote the supply of dollars in Argentina is massive it's 265 billion Dollars in cash notes which makes it the Country with the highest number of Circulating dollars outside of the United States itself yes argentine's Have such little trust in their own Currency that they're holding modling if You will the equivalent of the GDP of Kenya this phenomenon Steve says Disproves the argument that it's Unfeasible to implement dollarization The dollars are already in circulation Hypothetically if Argentina under mle Does adopt the US dollar as its legal Tender its impact could reverberate Internationally let's look at one Plausible scenario if Steve's figures on The amount of US dollars in circulation In Argentina are correct and the country Does dollarize this could lead to a much Needed influx of money back into its Banking system in response Argentine Financial institutions along with the Government May then opt to invest a Substantial portion of this capital in US Government debt adding it to their Balance sheets such a large-scale Acquisition of US government bonds could Potentially drive down long-term

Interest rates in the United States in Turn if these interest rates were to Fall it could act as a catalyst for a Rally in the US Stock Market as lower Interest rates often make stocks more Attractive to investors it's the Butterfly effect hold up a second there Guy sorry to interrupt folks but I just Wanted to very quickly tell you about The coin Bureau deals page now this is The place where we have put together Some of the very best deals and Promos In all of crypto so you can think things Like exchange signup bonuses trading fee Discounts and money off of Hardware Wallet and much much more besides so if You want to check that out coin.com Deals is the place to go or you can just Use the link in the description of this Video down below thanks very much and Now back to you guy so now that the Broader macroeconomic picture is clearer Let's delve into mle's stance on crypto One question many opposing is whether Mle's election could lead to BTC being Adopted in Argentina as a legal tender As you'll remember El Salvador was the First country to do this in 2021 the President najib buelli claimed it would Boost the country's economy promote Foreign investment and also facilitate Remittances which account for a whopping 25% of El Salvador's GDP how has this Gone well to date it's fair to say that

It has had mixed results let's examine This more closely according to official Figures from last year just 20% of Sal And businesses accepted payment in BTC And only 14% of businesses in El Salvador had carried out transactions in The asset between September 2021 and July 2022 in the same period just 2% of Remittance payments had been made in BTC In short adoption and public confidence In BTC is low in El Salvador however When you dig into the reasons for this It's clear that they might not Necessarily apply to Argentina kayy Arguably tried to roll out his vision For BTC in El Salvador too quickly elcho Which is a wallet backed by the Government to onboard new users was Criticized for being glitchy very Glitchy now theoretically the idea was Great new users were encouraged to join With $30 signup bonuses it aimed to Seamlessly connect with the banking System of El Salvador so that people Could deposit or withdraw dollars from The platform and it does not charge Commission for remittances but because The tech wasn't up to scratch adoption Suffered now the Cho wallet has just 3.1 Stars on the Google Play Store with over 30,000 reviews would you download that App Unlikely then you have market dynamics For most of the period since BTC was

Adopted as legal tender in El Salvador Crypto has been in a bare Market it's Not easy to onboard new people at the Best of times times but when there's Endless fud flying around the challenge Becomes Monumental what also hasn't Helped is the fact that buk has been Pretty quiet about BTC in the last year Or so we don't know how much BTC El Salvador really has but we can must a Guess based on bu's tweets according to Estimates by coindesk if the country Bought one BTC a day as part of the Dollar cost averaging strategy the President outlined in November 2022 its BTC Holdings would still be in the red However this could all be turned on its Head when we enter a bull market as fud Turns to fomo the third factor to Consider when assessing the performance Of making BTC legal tender in El Salvador is education numerous reports Indicate that there is still a lot of Misinformation around BTC and crypto in General in El Salvador when combined With a poor market and poor Tech it's Perhaps not surprising that most Salvadorans have sought the safe haven Of cash over crypto for now at least I Suspect we'll see crypto pick up in El Salvador when we fully enter a bull Market but now back to Argentina one thing that distinguishes The two countries is that crypto

Adoption in Argentina is among the Highest in the world just as most people Quickly convert their salaries into US Dollars to prevent the devaluation of Their earnings others convert their Salaries into US dollar pegged stable Coins like usdt and usdc and some of Course invest in other crypto assets how Many argentines hold crypto well that is Hard to say a report by Reuters earlier This year put it at 23% however a local Crypto Source quoted by chainalysis put It at around 11% regardless of the number you go with It is very high in relative terms for Context in the US the figure is around 177% all of which is to say that Argentina is a far more fertile Environment for crypto adoption but While the seeds of growth are there will Mle be able to successfully cultivate Them well the short answer is it's Unclear Bitcoin certainly responded Positively to his election with the Price of BTC pumping to $377,000 on the news and mle openly Approves of Bitcoin in media discussion He's called it a tool that helps shift Monetary control back from the central Bank to the private sector not only that But he also views it as a welcome Alternative to Conventional assets like Gold or silver but while mle is Certainly Pro Bitcoin it's not a central

Component of his platform not by a long Shot in fact some critics say mle has Only talked about Bitcoin to Pander to Younger more tech-savvy voters others Cite his involvement in hyping alleged Crypto Ponzi coinx which is accused of Swiping $300,000 from users as proof That he doesn't know much about the Sector for all of these reasons it's Highly unlikely that Argentina will Follow El Salvador's example BTC will Not become legal tender at least in the Foreseeable future that said some Commentators are hopeful that mle's Election will quote supercharge crypto Adoption in the country Samson Mo a key Player in nation state Bitcoin adoption Has noted that while the deal Argentina Made with the IMF last year for a $45 Billion loan included a stipulation that Argentine Banks wouldn't deal with Crypto this might become redundant if Mle abolishes the central bank and this Samson says could result in argentine's Adopting BTC as legal tender given the Country's High adoption rates this in Turn could drive the price of BTC Upwards but while mle may be good for Btc's price is he good for crypto as Coindesk's Noel hon warned in a recent Piece entitled quote Argentina's Election what bitcoiners are getting Wrong mle's rhetoric around individual Freedom May strike a chord with many in

Crypto but he is emphatically not pro- Freedom when it comes to social policies He believes sex education is a Marxist Plot to dis Al families he opposes Feminist policies and wants to ban Abortion he rejects the notion that Humans have contributed to climate Change and wants to loosen gun control Laws he's also downplayed atrocities Committed during Argentina's brutal Military dictatorship between 1976 and 1983 and has proposed shuttering a Museum dedicated to its many victims and These are just some of the Hardline Policy views mle holds so even if he Were a vowed Pro crypto something the Jury is still out on ask yourself this Is this the man you want people to Associate with the crypto industry I for One think there may be better Figureheads out There okay that's about it from me but What about you do you live in Argentina What do you think of Javier M's election And what do you think his victory could Mean for crypto let us know in the Comments below now before you go if you Enjoyed this video and learned something From it please like it share it and make Sure you subscribe to both coin buau and Coin buau Clips also head on over to the Coin Bureau deals page where you can Find the best discount deals and finest Crypto merch there is it helps support

Our Channel and lets us continue to Provide you with the best crypto and Macro content out there thank you for Tuning in my name is guy and this is Goodbye

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